Work order

A construction contract is a contract for the in-plant production of a defined quantity of a particular part, assembly, or a product or product ( economy). It is triggered by the application of a consumer or customer ( ' customer order ') or by an in-house contracting; this can also be an event, such as falling below a reporting inventory at an in-house manufactured part.

One differentiates primary and secondary production orders. Primary production orders (see also independent requirements ) refer to the finished product. From these, the dependent requirements for the components and parts are included in the needs assessment determines from which created the secondary production orders or the order quantity for orders to suppliers are generated. By the resolution of the secondary production orders more construction contracts may becoming triggered. The creation of manufacturing income in industries with complex products, such as the automotive industry, aeronautics, mechanical engineering, is a multistep process, since the required units, assemblies and parts are manufactured in different plants and production areas and only then assembled into the final product.

Order cycle

A construction contract goes through in processing an order cycle with different job status, document the order progress. First, the order is accepted and approved, after which it is scheduled in the manufacturing process, only after considering various conditions it is released to production, then it is carried out in production and the result is checked after successful testing of the shipment, and finally that the transfer is to the customer. With the adoption of the product by the internal or external customers of the order cycle is complete. An order can be canceled in the course of the application cycle.

All production orders are summarized in a production program, since the sum of all jobs compared with the existing capacity and the order of the various construction contracts must be determined.

He used to work preparation (AV ) of the short-term capacity planning, manufacturing, providing the production paperwork, the notification for order release and possibly real time and Istverbrauchserfassung in the different manufacturing processes. In production controlling, it enables the determination of the production cost and the variance calculation.

Content of the production order

A construction contract contains

• Reference to the part to be manufactured, the assembly to be manufactured or to be manufactured product
• Number of parts to be produced ( lot size)
• Earliest and latest start and finish dates (see Network )
• If necessary. Contains a reference to the bill of what type and amount of material necessary
• If necessary. Reference on the work plan, which defined for the manufacturing operations in each case the necessary machine or manufacturing space, the necessary staff resources, and the duration of individual operations such as setup, Customize, cleaning.

Set-up costs fall for each production order only once. In the manufacturing lot sizes, this leads to a lot size with increasing economies of scale of the set-up costs. The Plan- unit cost of production without setup costs, however, are independent of the lot size and therefore constant for any production quantities.

In addition to these planning data, the actual data can be collected on the production order. Can feed, for example, the additional costs of rejects in the costing. In addition to the plan or standard consumption rates and working hours so different Istverbrauchsmengen and working hours can be recorded.

In production controlling, a production order are pros and nachkalkuliert. The quantity and price variances can be determined in a deviation analysis. Accordingly, the following applies: actual costs of the production order = planned costs of the production order deviations

In the variance analysis, the reasons can be analyzed and discussed.